tailieunhanh - The interactive relationship between credit growth and profitability of people's credit funds in Vietnam

This study purposes to discover the interactive relationship between credit growth and profitability and to examine factors that affect the credit growth and profitability of people's credit funds (PCFs). | The interactive relationship between credit growth and profitability of people s credit funds in Vietnam Accounting 6 2020 79 88 Contents lists available at GrowingScience Accounting homepage ac The interactive relationship between credit growth and profitability of people s credit funds in Vietnam Van Duong Haa aDoctor of philosophy Postgraduate Training Institute Hong Bang International University Ho Chi Minh City Vietnam CHRONICLE ABSTRACT Article history This study purposes to discover the interactive relationship between credit growth and profitability and to examine Received October 30 2019 factors that affect the credit growth and profitability of people s credit funds PCFs . After regression analysis on a Received in revised format set of panel data from 2013 to 2018 on 24 selected PCFs it appeared that deposit growth and loan-to-deposit ratio November 26 2019 had positive relationships with credit growth and capital adequacy ratio and profitability had negative relationships Accepted November 30 2019 with credit growth of PCFs. The age of PCFs has a positive relationship with profitability while the credit growth Available online debt-to-equity ratio non-performing loan ratio economic growth and inflation have negative relationships with December 18 2019 profitability of PCFs. The study found the credit growth and profitability have relationships with each other in a Keywords contrary trend. Based on the findings the study proposes policy measures that could be implemented by the Capital adequacy ratio managers to increase PCFs credit growth rate and profitability. Credit growth Debt-to-equity ratio Loan-to-deposit ratio People s credit fund Profitability 2020 by the authors licensee Growing Science Canada 1. Introduction People s credit fund is one of the institutions that provide microfinance services. Increasing the ability to provide financial services is one of the important goals targeted by many people s credit funds